PMRC urges electricity tariff reform

Policy Monitoring and Research Centre (PMRC) says tariff reform is a key requirement not only for improving the financial standing of energy enterprises in Zambia, but also for attracting both investors and private sector involvement in energy development.

PMRC Executive Director Bernadette Deka in a statement says government should establish a feed-in tariff policy, were it sets prices for different types of renewable power to compensate producers for the higher cost of producing clean energy.

Ms Deka explains that utilities will then be required to purchase power from renewable resources at this price, with the option of either spreading the additional costs across their entire customer base or receiving compensation from the government to recover the incremental costs.

She says PMRC believes Zambia should undertake a renewable energy resource assessment programme that would clearly identify and map quantities and prevalence of resources.

She notes that this would further assist in setting renewable energy targets for production and provide information for potential investors.

Ms Deka states that renewable energy targets based on such a resource assessment would be realistic and achievable, consistent with the country’s ambitions of adding other renewable energy types to the electricity mix.

She adds that such a policy move would also provide clear policy signal to attract private sector investment in renewable energy, especially if the target included a mandatory clause for power generators with specific energy interests.